BILL NUMBER: SB 886 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 1, 2016
AMENDED IN SENATE MAY 31, 2016
AMENDED IN SENATE APRIL 26, 2016
AMENDED IN SENATE APRIL 12, 2016
AMENDED IN SENATE MARCH 17, 2016
INTRODUCED BY Senator Pavley
JANUARY 20, 2016
An act to add Sections 454.53, 455.6, 2836.1,
and 9620.5 to the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 886, as amended, Pavley. Electricity: energy storage systems.
Existing law requires the Public Utilities Commission to determine
appropriate targets for each load-serving entity to procure viable
and cost-effective energy storage systems to be achieved by December
31, 2015, and December 31, 2020. Existing law requires the governing
board of each local publicly owned electric utility to initiate a
process to determine appropriate targets for the utility to procure
viable cost-effective energy storage systems to be achieved by
December 31, 2015, and December 31, 2020. Existing law
requires the commission to adopt a process for each load-serving
entity to file an integrated resource plan and a schedule for
periodic updates to the plan to meet certain objectives.
Existing law requires each publicly owned electric utility to
prudently plan for and procure resources, including energy storage
systems adequate to meet the 2015 and 2020 targets, to provide
reliable electric service to its customers.
This bill would require load-serving entities, in
developing and updating their integrated resource plans, to consider
the benefits of procuring energy storage systems and would require
the commission, in approving the plans, to require the procurement of
energy storage systems before fossil-fuel-based generation in
specified circumstances. The bill would require electrical
corporations, by October 1, 2017, to develop appropriate tariffs or
programs to provide incentives for customers to install
grid-connected energy storage systems on the customer side of the
electrical meter. The bill would require the commission to
determine appropriate targets, if any, for each load-serving entity
to procure viable and cost-effective energy storage systems to be
achieved by December 31, 2030, as specified. The bill would
require the commission to require electrical corporations to offer
time-of-use pricing or dynamic pricing to customers using energy
storage at their premises. Because a violation of an order,
decision, rule, direction, demand, or requirement of the commission
is would be a crime, this bill would
impose a state-mandated local program. The bill would require the
governing board of each community choice aggregator,
aggregator and each publicly owned electric utility,
by July 1, 2018, to determine appropriate targets, if any, for
the community choice aggregator or electric utility, as
applicable, to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2030. The bill would require
the governing board of each local publicly owned electric utility, in
planning for future procurement of resources, to consider the
benefits of procuring energy storage systems and to procure energy
storage systems before fossil-fuel-based generation in specified
circumstances. The bill would require each of those
governing boards, by July 1, 2018, or during its next open integrated
resource plan process, to determine appropriate targets, if any, for
the utility to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2030. Because this
bill would impose additional requirements on the governing boards of
local publicly owned electric utilities and community choice
aggregators, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 454.53 is added to the
Public Utilities Code, to read:
454.53. (a) The commission shall require load-serving entities,
in developing and updating their integrated resource plans pursuant
to Section 454.52, to consider the benefits of procuring energy
storage systems, as defined in Section 2835.
(b) Except as provided in subdivision (c), the commission, in
approving an integrated resource plan for a load-serving entity shall
require that, to the extent energy storage systems can meet resource
needs as well as or better than fossil-fuel-based generation at
reasonably equivalent or lower cost, the plan provide for the
procurement of energy storage systems before fossil-fuel-based
generation.
(c) In certifying an integrated resource plan for a community
choice aggregator, the commission shall act in accordance with
paragraph (3) of subdivision (b) of Section 454.52 and paragraph (5)
of subdivision (a) of Section 366.2. SEC. 2. SECTION 1. Section 455.6 is
added to the Public Utilities Code, to read:
455.6. The commission shall, in a new or existing
proceeding, shall require each electrical
corporation, by October 1, 2017, to propose new tariffs or
programs to provide incentives to customers of the electrical
corporation for installing corporation to offer
time-of-use pricing or dynamic pricing to customers using
energy storage systems on the customer side of an electric
meter that is connected to the electrical grid. at
their premises. SEC. 3. SEC. 2. Section 2836.1 is
added to the Public Utilities Code, to read:
2836.1. (a) (1) Except as provided in subdivision (b), on or
before January 1, 2018, the commission shall determine appropriate
targets, if any, for each load-serving entity to procure viable and
cost-effective energy storage systems to be achieved by December 31,
2030. Energy storage systems procured pursuant to the targets shall
be limited to those that reduce the need for fossil-fuel-based
generation, provide benefits to the electrical grid, or support the
integration of eligible renewable energy resources procured pursuant
to the California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1).
(2) This subdivision does not prohibit the commission's evaluation
and approval of any application for funding or recovery for costs of
any ongoing or new development, trial, or testing of energy storage
projects or technologies outside the targets required by this
chapter.
(b) On or before July 1, 2018, the governing board of each
community choice aggregator shall determine appropriate targets, if
any, for the community choice aggregator to procure viable and
cost-effective energy storage systems to be achieved by December 31,
2030. The governing board may consider a variety of policies to
encourage cost-effective deployment of energy storage systems to
reach the targets, including refinement of existing procurement
methods to properly value energy storage systems.
(c) On or before July 1, 2018, or during its next open
integrated resource plan process, the governing board of
each local publicly owned electric utility shall determine
appropriate targets, if any, for the utility to procure viable and
cost-effective energy storage systems to be achieved by December 31,
2030. The governing board may consider a variety of policies to
encourage the cost-effective deployment of energy storage systems to
reach the targets, including refinement of existing procurement
methods to properly value energy storage systems.
SEC. 4. SEC. 3. Section 9620.5 is
added to the Public Utilities Code, to read:
9620.5. The governing board of each local publicly owned electric
utility, in planning for future procurement of resources, shall
consider the benefits of procuring energy storage systems, as defined
in Section 2835, and, to the extent energy storage systems can meet
resource needs as well as or better than fossil-fuel-based generation
at reasonably equivalent or lower costs, procure energy storage
systems before fossil-fuel-based generation.
SEC. 5. SEC. 4. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act or because costs that may be incurred by a local agency or
school district will be incurred because this act creates a new crime
or infraction, eliminates a crime or infraction, or changes the
penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIII B of the California
Constitution.